HUNTINGTON BEACH : City Adopts Budget, Plans to Use Reserves
The City Council has approved a $189.5-million budget for the fiscal year beginning July 1.
The planned expenditures exceed expected income by $2.9 million. Therefore, the city must dip into its reserves to balance the budget.
City Administrator Michael T. Uberuaga said the deficit would have been deeper had the City Council rejected a new fee on cable television. That fee, which goes into effect July 17, is expected to bring in $750,000 a year.
The City Council on Monday night approved the cable TV fee just minutes before giving final approval to the 1991-92 city budget. The council split 5 to 1 in approving the fee, but the vote was unanimous on the new budget.
The budget for the coming fiscal year is lean because the recession has sharply cut into city income, Uberuaga said.
“The effect of these citywide budgetary limitations means that some decline in the quantity and quality of services will occur during fiscal year 1991-92,” said Deputy City Administrator Robert J. Franz, in a memo to the council.
All city departments except police and fire must make spending cutbacks to accommodate the new budget. The police and fire departments were spared because all of the cable TV fee money will go to those agencies, Uberuaga said.
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